Yesterday, European stocks had another positive day. The Stoxx Europe 600 climbed 1.08%, Germany's DAX added 0.40%, France's CAC 40 increased 0.48%, and the U.K.'s FTSE 100 advanced 1.35%.
64% of STOXX 600 constituents traded higher yesterday.
86% of the shares trade above their 20D MA vs 78% Tuesday (above the 20D moving average).
81% of the shares trade above their 200D MA vs 79% Tuesday (above the 20D moving average).
The Euro Stoxx 50 Volatility index eased 1.95pt to 23.13, a new 52w high.
SECTORS vs STOXX 600
3mths relative high: none
3mths relative low: none
Europe Best 3 sectors
utilities, real estate, technology
Europe worst 3 sectors
insurance, media, construction & materials
The 10yr Bund yield rose 2bps to -0.49% (above its 20D MA). The 2yr-10yr yield spread rose 2bps to -21bps (below its 20D MA).
GE 08:00: Oct Harmonised Inflation Rate YoY final, exp.: -0.4%
GE 08:00: Oct Harmonised Inflation Rate MoM final, exp.: -0.4%
GE 08:00: Oct Inflation Rate MoM final, exp.: -0.2%
GE 08:00: Oct Inflation Rate YoY final, exp.: -0.2%
UK 08:00: Q3 Construction Orders YoY, exp.: -45%
UK 08:00: Sep Goods Trade Balance, exp.: £-9.01B
UK 08:00: Sep GDP YoY, exp.: -9.3%
UK 08:00: Sep Construction Output YoY, exp.: -13%
UK 08:00: Sep Industrial Production YoY, exp.: -6.4%
UK 08:00: Sep Industrial Production MoM, exp.: 0.3%
UK 08:00: Sep Manufacturing Production MoM, exp.: 0.7%
UK 08:00: Sep Manufacturing Production YoY, exp.: -8.4%
UK 08:00: Sep Balance of Trade, exp.: £1.4B
UK 08:00: Q3 Business Investment YoY Prel, exp.: -26.1%
UK 08:00: Q3 Business Investment QoQ Prel, exp.: -26.5%
UK 08:00: Sep GDP MoM, exp.: 2.1%
UK 08:00: Sep GDP 3-Mth Avg, exp.: 8%
UK 08:00: Q3 GDP Growth Rate YoY Prel, exp.: -21.5%
UK 08:00: Q3 GDP Growth Rate QoQ Prel, exp.: -19.8%
UK 08:00: Q3 Labour Productivity QoQ Prel, exp.: -2%
UK 09:00: BoE Gov Bailey speech
EC 10:00: ECB Economic Bulletin
FR 10:00: IEA Oil Market Report
EC 10:50: ECB Guindos speech
EC 11:00: Sep Industrial Production YoY, exp.: -7.2%
EC 11:00: Sep Industrial Production MoM, exp.: 0.7%
EC 14:00: ECB Panetta speech
UK 15:00: Oct NIESR Monthly GDP Tracker, exp.: 15.2%
EC 15:15: ECB Mersch speech
EC 16:30: ECB Schnabel speech
EC 17:45: ECB President Lagarde speech
GE 19:00: Bundesbank Mauderer speech
In Asian trading hours, EUR/USD was little changed at 1.1778 while GBP/USD slipped to 1.3215. USD/JPY retreated to 105.30.
Spot gold bounced to $1,870 an ounce.
#UK - IRELAND#
National Grid, an electricity and gas utility company, announced that 1H underlying profit before tax slid 9% on year to 717 million pounds and underlying operating profit fell 12% to 1.15 billion pounds. The company proposed an interim dividend of 17.00p per share, up from 16.57p per share in the prior-year period.
Siemens, an industrial manufacturing conglomerate, announced that 4Q net income rose 28% on year to 1.88 billion euros and adjusted industrial businesses EBITA climbed 10% to 2.64 billion euros on revenue of 15.31 billion euros, down 6% (-3% on a comparable basis). The company proposed a dividend of 3.50 euros per share, down from 3.90 euros in the prior year. Regarding the outlook, the company stated: "Siemens expects moderate rise in net income for FY 2021 despite significant burdens from currency translation effects."
Deutsche Telekom, a telecommunications group, posted 3Q adjusted net profit grew 6.3% on year to 1.51 billion euros and adjusted EBITDA After Lease rose 49.6% to 9.69 billion euros on net revenue of 26.39 billion euros, up 31.9%. The company has raised its full-year adjusted EBITDA AL guidance to "at least 35 billion euros" from "around 34 billion euros" previously.
Merck KGaA, a science and technology company, reported that 3Q adjusted EPS jumped 73.3% on year to 2.34 euros and adjusted EBITDA rose 53.0% to 1.70 billion euros on net sales of 4.45 billion euros, up 9.7% (+7.2% organically). For the full-year, the company expects organic net sales to grow 4% - 5% to 17.10 - 17.50 billion euros and adjusted EBITDA to increase by 6% - 8% to 5.05 - 5.25 billion euros.
From a technical point of view, the stock remains supported by a bullish trend line in place since June 2020 and its rising 50DMA. Furthermore, the RSI is trading above the key support at 45.25%. Above 126E, look towards the previous top of November at 140.35E and 145E in extension.
Source: TradingView, GAIN Capital
KBC, a financial group, posted 3Q net income increased 13.9% on year to 697 million euros on net interest income of 1.12 billion euros, down 4.4%.
Generali, an insurance company, announced that 9-month adjusted net profit declined 12.1% on year to 1.48 billion euros while gross written premiums grew 0.3% to 51.99 billion euros. Meanwhile, the company said, subject to a positive regulatory position, it intends to distribute the second tranche of the 2019 dividend in 2021.
Equinor (EQNR): $0.09, Ferguson (FERG): $2.082, Glaxosmithkline:19p, Royal Dutch Shell (RDSA): $0.1665
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.
Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.